Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Doorstop - I felt well within my rights last year to comment on a company that I had invested in and where I felt the management had deceived investors and totally screwed things up - especially when compared to the full CPR document (I know most wouldn’t have read that). Not the first company where that has happened and sometimes they get it right the second time - hopefully that will be the case here. Whilst I still don’t trust the management I do respect the IIs that have invested heavily, as they’re proper ones, not Mickey Mouse bucket shops!
SQZ dropped from over 60p down to sub 5p (I bought and also tipped it at just over 5p), then it got the a North Sea assets during an oil down cycle and hasn’t looked back. This has dropped on low volumes and there isn’t much liquidity - I suspect some who got sucked into the ramp up to mid 7s have probably got bored and have been dumping, as it was being pushed hard in some of the Telegram groups. The IIs that put £30 million in here at 5p don’t have a reputation for losing money - especially Slater!
I’ve certainly got nothing against CRUX and they are definitely one of the better interviewers and ask proper probing questions. But I’ve always done best on AIM resource companies that do very little PR and get on with the business! It’s the ones that constantly need to promote their company as being ‘the best thing since sliced bread’ that you have to be wary of! Although I also really couldn’t care less what the SP does short term and it all comes down to the ultimate success, or otherwise, of getting Araguaia into production.
They've been terrible so far and would be nice to see them buying a load on the open market themselves - not just shares gifted as part of the IPO! I do think that Bybrook and Slater are no mugs though and must see something here. Oil price will play a big part though in how cash generative, or otherwise, the Canadian assets turn out to be - if oil does recover to any real degree they may have bought this asset at just the right time. Actually reminds me a bit of SQZ - they completely screwed up Indonesia (2010/11, SP hit over 60p), share price crashed, everyone thought the company and management was awful, then they got the North Sea asset at just the right time and never looked back!
I very much doubt that the IIs who put in £30 million - including Slater which doesn't generally get involved in small AIM cos and invests long term - would have done so if it is all a scam. Weak oil price, lack of liquidity and a PIs buying in via Primary Bid for an expected pump, or who got caught out buying at 7p, isn't helping. Obviously I wish I'd bought in cheaper but still not too disappointed to have an average below the placing price - wouldn't actually bother me if it did go down to 3p or whatever as would be happy to take some more.
I would definitely agree with that comment about JB and have found him very open, even if you have a different opinion on something. I would also point out that not many people, whilst holding 60% of a company, would point out how screwed it was in terms of the potential cost of complaints and contribute to the share price plummeting - his comments will have caused the FCA etc to take a closer look at its practices. It’s more the sort of thing you’d expect the likes of Muddy Waters to highlight - so fair play to JB for doing so himself, at the expense of his investment!
Yuri - the shareholder agreement in the IPO document may well stand though (it’s something I’ve discussed with him and is a concern of his lawyers). If that was invoked again he could have similar problems to what he has done and which caused him to have to sell down below 10%.
Seamus - they must have backed the board as over 90% of the minority holders voted against Richmond (Richmond legally couldn’t vote their 60% - hence why they have sold, as any chance of winning a vote meant putting those shares in the hands of people who might vote for them). Some PIs are hopefully more aware this time though and won’t have had their voting rights in nominee accounts automatically voted in favour of the BOD by the brokers who hold the shares and vote as a proxy.
Yuri - he already held over 60% so surely he would just have bought another 10% and forced a compulsory bid back then? Rather than dumping stock at a very low price. Doesn’t seem logical to me! I genuinely think he wants to come back to the company but also to keep it as a PLC.
The instruction to buy up to 29% is irrevocable and can’t be changed - hence why by making that contract now and being unable to alter it, he can potentially get around any rules relating to price sensitive info that he would subsequently be in possession of if he wins the vote and comes back.
If he were to buy now - and given an irrevocable instruction to buy 29% - it would take him over the 30% threshold and spark a compulsory takeover bid. Which he has carefully avoided with his instruction to buy 29%! The same is true with any connected parties who buy shares - if they can be considered a concert party that would also trigger a bid (I’ve seen plenty saying his mates are holding shares on his behalf etc). The only real uncertainty with his instruction is if the FCA block him taking a controlling interest - more than 20% - given that this is a regulated lender.
Worth reading his Irrevocable buy instruction again - it actually states that buying will start once he is CEO (which he has confirmed means once the FCA approve him to take that position, not just if he wins the vote).
We should see if any larger amount of warrants are going to be exercised as a big chunk of them are owned by Bybrook - if they are going to exercise then I’d expect to see them having to sell shares first (given how close they are to the 30% threshold which they won’t exceed). I’m pretty sure the selling we saw was those already exercised warrants being sold off into limited buying volume - I added more at 4.6p on Friday. Short term direction will probably largely be dictated by the oil price and lockdowns.